Sarah Butler
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Marks & Spencer will announce plans today for its first eco factories, as the high street retailer prepares to draw thousands of suppliers into its green agenda.
Three factories, one in Sri Lanka and two in Wales, will harness the latest renewable-energy and recycling technology to act as a blueprint for other firms. The plans are part of M&S’s Plan A initiative, in which it has pledged to spend £200 million in becoming more environmentally friendly.
Mike Barry, the head of corporate social responsibility, said: “M&S has made a significant commitment to reducing its environmental impact, and that has to be picked up by our supply chain. They know that if they want to be pursuing business with us in the future, they have got to come on the journey with us.”
Hundreds of manufacturers are scheduled to attend a conference on Thursday, at which M&S will launch an internet facility, where it hopes manufacturers will swap ideas on how to become greener.
Suppliers contacted by The Times said that they were interested in the concept of energy saving and environmentally sustainable production, but they were concerned about the potential cost. One supplier said: “The problem with all this rapid change is that businesses are finding it hard to work out the risk/reward ratio. If a business makes an investment now, it could be that someone else comes along and offers to do it more cheaply. You don’t get anywhere without commitment, but they are proving difficult to pin down on that.”
Mr Barry said that M&S had helped to sponsor environmentally aware architects, who had worked on the retailer’s stores in Britain, to support new developments at the factories in Wales and Sri Lanka. Mr Barry said that he hoped that work being carried out at the three initial eco factories would help to persuade others of the potential benefits to their business. “We are clear, and suppliers are increasingly clear, that going green can bring big cost savings,” he said.
M&S is expected to announce profits of close to £1 billion today as it reveals the next stage in its turnaround plan at its annual results presentation.
While the retailer will highlight the development of Plan A, the City is likely to focus on the trading in the three months to April 1 and whether M&S’s heavy investment in refurbishing its stores has continued to lift sales.
Suppliers said that clothing sales remain relatively strong. However, analysts fear that food sales growth could have been hit by the success of Waitrose and J Sainbury in offering their customers more upmarket products.
M&S staff are reported to be in line for bonuses of up to £1,250 each as a reward for the expected 28 per cent rise in profits for the year to April to about £960 million.
Stuart Rose, Marks & Spener’s chief executive, has led an intensive recovery programme since he was hired to help to fight off a takeover bid from Philip Green in 2004.
In the past two years he has restructured the supply chain, cut costs and introduced more fashionable clothing, helping the chain to report its sixth successive quarter of growth by the start of this year.
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